Opening new levels with HMD enabled in Packaged Projects causes tracking issues

In 5.3 when the HMD is enabled and a level is loaded, opening another level in VR causes tracking problems. Tracking becomes wobbly and choppy, yet FPS remains the same.

This only happens in Packaged Projects.

Reproduced by starting a new project using Epic’s VR template. Start in VR Template Map level and bind a keypress to open the VR Basic level. Package and run. Tested on two machines using Oculus Quest 2 and Vive Pro. Tracking issues are easier to see in these simple levels if you move your head side to side.

Can be worked around by disabling the HMD, delay, open new level, then reenable HMD.

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UE5.2 also has this problem. I tried 5.3.2 but it hasn’t been fixed yet.